NAIROBI, Kenya, Apr 27 – The Kenya Commercial Bank (KCB) Group plans to grow its market share from the Small and Medium Enterprises (SME) market segment through an enhanced product portfolio and cross selling opportunities.
KCB targets to increase its SME customer base to 100,000 accounts representing a 30 percent rise from the 2010 figures.
Through a rigorous and ambitious SME campaign dubbed \’unlocking your Business potential\’, KCB hopes to achieve a lending portfolio of Sh15 billion in the sector, up from Sh9.6 billion in 2010.
This would be in addition to increasing its SME deposit book to Sh30 billion by introducing unique products and services geared towards bridging the gap in the SME market.
"Today we have in excess of Sh18 billion in deposits entrusted to us by our existing SME customer base. This together with the Sh12.5 billion capital raised in the successful rights issue last year, puts KCB in a highly liquid position to lend favourably to the sector," said Peter Munyiri the Deputy Chief Executive Officer in charge group business.
Speaking to KCB SME Customers who had gathered at the bank\’s Enterprise Road branch, Mr Munyiri added that key in this effort would be the growth of the SME segment through, business development services and financial support to SMEs.
This segment comprises sole traders, private limited liability companies, family based businesses, professional practices, farmers, and Non-Governmental Organisations with a turnover of up to Sh120 million and who have the capacity to enjoy loan facilities of up to Sh20 million.
This month the bank also launched the "KCB Biashara Mtaani" initiative which is a partnership with local businesses to provide financial services to the unbanked population who form the customer base for our SMEs.
The initiative is expected to cascade financial services to markets that banks have not been before. To date the bank has already enlisted over 600 agents.
"In addressing the challenges faced by SMEs, we commit to continue focusing on our very successful SME Biashara Programme that already enjoys a membership of over 7,000 small enterprises in the country. Through the programme, last year the bank provided business counselling and training sessions to over 5,000 SME through 52 workshops across Kenya. Through this networking and capacity building vehicle, we shall be able to address the growing needs of the sector in the region," Mr Munyiri said.
With the Kenyan economy anticipated to grow by 6.8 percent by 2012 driven mainly by agriculture, expansion of trade and continued investment in infrastructure, KCB hopes to position itself to be the preferred financial and advisory services partner for the local SME business owners.
"These are sectors heavily patronised by SMEs and it is widely accepted that SMEs will play a key role in the economic growth of Kenya and the EA region through the establishment of the East African Protocol that will boost import-export trade," explained Mr Munyiri.